Using data from Chinese non-financial listed firms over the 2009-2021 period, this study examines the link between cybersecurity and total factor productivity. The results suggest that cybersecurity can improve total factor productivity, a finding robust to multiples tests. Further investigation confirms that this relationship arises from information multiplication and capital deepening. It is particularly pronounced after the implementation of the Cybersecurity Law or among firms with strong digital innovation activities. In contrast, for firms whose senior executives have an information technology background, the moderating effect is not significant. However, the relationship is more pronounced for firms with larger scale, that are more technology-intensive, or operating in industries with above-average competition. Policy wise, these findings provide new evidence on the economic value of cybersecurity and offer policy implications for improving cybersecurity governance and aligning security investment with information and communications technology development to enhance resource allocation efficiency and sustainable digital growth.

This paper studies the evolution of China's production and trade patterns during its integration into the global economy. We document and explain new facts concerning changes in production and exports at the industry and firm levels using microdata and a quantitative Ricardian and Heckscher–Ohlin model with heterogeneous firms. Counterfactual simulations reveal that capital deepening made China's production and exports more capital-intensive, although labor-biased productivity growth acted as a counterforce. Consistent with the data, our model demonstrates that China's trade openness peaked around the mid-2000s and fell until the 2020s, while the world's exposure to Chinese exports rose continuously.